VAT rule 18 set to be amended
Zambia plans to amend VAT rule 18 which requires exporters to produce import certificates from destination countries because of feasibility issues. The Minister of Finance wrote to the President asking that the VAT rule be limited to export verification.
ZANACO launches "loan-a-cow" product
Zambia National Commercial Bank (ZANACO) launched the “loan-a-cow” scheme – the first of its kind in Zambia. Through the scheme, smallholder farmers will be able to acquire cow-loans at an interest rate of 16 percent from ZANACO through their respective cooperatives. The farmer then services the loan through revenues from milk produced from his/her cow which is purchased by milk processors Parmalat/Zam Milk. The processor pays a percentage of the full amount they are supposed to pay the farmer to ZANACO i.e. interest payment. If a farmer can consistently produce 30 litres of milk per day, the loan can be repaid in 3 years.
Last year, Zambia put its hat in the ring to bid for the right to host the 2019 edition of the Africa Cup of Nations (AFCON). Last week, Confederation of African Football (CAF) inspectors were in the country to assess Zambia’s facilities. The decision as to which country will host the 2019 as well as the 2021 edition of the competition will be announced next month at a meeting of the CAF executive in Cairo. So what happens IF they choose Zambia’s bid?
*THE ESTIMATES BELOW ARE CONSERVATIVE AND BY NO MEANS EXHAUSTIVE – THEY ARE MEANT TO GIVE GENERAL PICTURE OF WHAT HOSTING AFCON 2019 COULD BE LIKE FOR ZAMBIA.*
$10m Twin Palm shopping mall open for business
The Twin Palm shopping mall opened its gates to customers last week. It cost $10m to develop over a period of two years by PMTP Zambia and will be managed by Knight Frank Zambia. The mall has 26 stores with a combined workforce of 500 and boasts Shoprite as its anchor tenant. The shopping mall is adequately positioned to cater to residents of Ibex Hill, Avondale, Salama Park and Chainda.
Gemfields, which has 75 percent ownership in Kagem Mine (25 percent owned by the government through ZCCM-IH), generated $15.5m off of sales of 11.6 million carats last week. This was company’s fifth auction in Zambia. There were 922kg of lower-grade emeralds and 1,500kg of beryl up for sale with 21 companies attending.
CAF inspectors in town to assess Zambia’s 2019 AFCON bid
Inspectors from the Confederation of African Football (CAF) are in town from the 9th to the 15th of August in order to assess Zambia’s bid to host the African Cup of Nations (AFCON) in 2019. The inspectors will be visiting various stadia, training facilities and accommodations in Lusaka, Ndola, Kitwe, Chingola, Chililabombwe and Livingstone. Zambia is one of five bidders looking to bring home the 2019 AFCON - Guinea, Ivory Coast, Algeria and Cameroon (DRC withdrew their bid). The CAF executive will decide on the hosts for 2019 as well as 2021 in September 2014 at a meeting in Cairo.
In a year when lending rates have been as high as 28 percent, Madison Financial services (MFS) has positioned itself to start tapping cheaper capital by listing on the Lusaka Stock Exchange. MFS will become the 23rd listed entity on the Lusaka Stock Exchange (LuSE) after they closed their Initial Public Offering last Friday. They also become the 3rd LuSE-listed domestic company with a presence outside of Zambia. The LuSE is up over 15 percent year-to-date despite an economically shaky first half of the year, making it a relatively attractive time to launch an IPO.
KLM set to scrap direct flight to Lusaka
Dutch airline KLM is set to discontinue direct flights from Lusaka to Amsterdam as of October 28 2014, two years after it started (and also a year after British Airways cut the Lusaka-London route). The carrier cited high operational costs as well as well a sub-optimal passenger mix which made the route unprofitable. The route will instead be serviced by KLMs strategic partner Kenya Airways via Nairobi to Amsterdam/Paris/London.
Trying to decipher this puzzle that is Zambia by using a variety of publicly available data (structured and unstructured) in conjunction with my own skill/experience. * * *